The Federal Home Loan Bank system earned $484 million in the third quarter of 2015 and attributes the 23 percent year-over-year decrease to net losses on derivatives and hedging activities. But total net income for the first nine months of the year saw a 29 percent jump, to $2.18 billion, according to figures compiled by the system’s Office of Finance. This was driven by higher litigation settlements and net gains on derivatives and hedging activities. After falling flat last quarter, total FHLB assets from the end of June were up at the end of the third quarter by less than 1 percent to $919.6 billion.
A helpful piece of advice: MSA participants should avoid entering into agreements that provide for exclusivity, such as being named a preferred lender.
New agency issuance of single-family MBS declined in October as a result of a slowdown in the purchase-mortgage market, according to a new Inside MBS & ABS analysis and ranking. Fannie Mae, Freddie Mac and Ginnie Mae issued a total of $107.19 billion of single-family MBS last month, a 5.6 percent slip from September’s volume. The flow of purchase mortgages securitized by the three agencies was down 9.6 percent for the month, while refinance volume was up 2.6 percent in October. Some of the strength in refi activity is...[Includes two data tables]
When it comes to trading in agency MBS, Deutsche Bank is heading for the exits as a lack of volume in a once-thriving profit center continues to head south. Granted, Deutsche’s departure from the space is part of a huge worldwide restructuring at the German-based bank, but with MBS trading volume falling to a 13-year low last year – and not looking much better this year – the decision was likely an easy one. Chris Whalen, senior managing director at Kroll Bond Rating Agency, said...
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